Gold/Copper/Oil/Silver: A March silver-squeeze recommendation

What a great way to start November with Equities making new all-time highs, the U.S. creating more jobs than expected, and the dreaded Fed meeting behind us. It appears on the surface that the Fed was much more accommodative than anticipated, considering when Bernake tapered, Equities fell 5% that week. Gold futures are back at $1815 and need to clear two more three-star major resistance levels 1825-1829***, 1836*** before clearing the way for another potential run back to 1900+. Gold bulls will need to watch the 10-Year yield, which fell to the lowest level since September 27 at 1.451%. Any rally in the 10-Year yield can disrupt this recovery by steepening the yield curve, and the "Big Banks" will target Gold and Silver again. We recommend clients to position with Silver call spreads going out to March and balancing any long Gold futures with 10-Year put spreads.



Daily March Crude Oil Chart

We still believe that Crude Oil presents itself as a top "commodity pick" for the remainder of 2021 and into the first half of 2022. Not surprisingly, OPEC+ ignored the requests from Oil importing countries such as the U.S. to boost production; instead, they decided to maintain its current 400,000 barrels per day output. The selloff leading into the announcement and rise in Oil volatility (OVX) has provided us with the opportunities to position ourselves to catch the tailwind rally we expect well into 2022 as airline and road travel surge. We will implement a strategy for clients new to futures by focusing on the March 100 barrel contract scaling down to the 50% retracement. If you would like to learn more about technical analysis, we have updated the guide to provide you with all the steps to create an actionable plan used as a foundation for entering and exiting the market. You can request yours here: 5-Step Technical Analysis Guide to Precious Metals.



Daily Copper Chart

Copper has recently been the victim of the Chinese economic slowdown, with Evergrande still in the picture and Covid grabbing headlines. We believe that China has been selling off Copper stockpiles, therefore, suppressing prices. The Covid case count stands at 800, and with a population of 1.4 billion people, we feel this headline will drift away as vaccinations rise. We recommend clients scale into Copper down to the 38.2% Fib retracement and hold for a retest of 4.51 on the charts. I just completed a new educational guide that answers all your questions on how to transfer your current investing skills into trading "real assets," such as the 10 oz Gold futures contract. You can request yours here: Trade Metals, Transition your Experience Book.


Daily Silver Chart

Being fully aware that Silver will probably disappoint, treasury yields will probably rip higher, and the big banks will clobber us like a rented mule, I'm willing to bet that most of you are having FOMO from the recent price surge off the lows. Now, most of you are "physical" Silver holders, and that's great; so am I, but the only thing I want to do is create compoundable wealth at this stage of my life. I want to buy Silver, have it rise and sell it, and buy something else. I don't want to lug around 5,000 ounces (312.5 pounds) in a suitcase to a pawnshop or sell it on eBay. Therefore, we recommend those suitable clients with 110 days till expiration buy the 5,000 ounce March Silver $26 - $29 call spread for 40 cents or $2,000 a piece plus commissions/fees. The maximum gain is $15,000 minus commissions/fees and achieved if Silver closes above $29 at expiration on February 23, 2022. The maximum loss of $2,000 plus commissions/fees occurs if Silver at expiration is below $26 an ounce on February 23, 2022. If Silver does move higher before expiration, we can liquidate the spread any time the market is open for a potential gain. Remember the last "Silver Squeeze" occurred was on a Sunday night when the futures and futures options were open, and those that waited for the "U.S. Equity options" open were left disappointed. If you have never traded futures or commodities, I just completed a new educational guide that answers all your questions on how to transfer your current investing skills into trading "real assets," such as the 10 oz Gold futures contract. You can request yours here: Trade Metals, Transition your Experience Book.



PHILLIP STREIBLE Chief Market Strategist www.bluelinefutures.com Main: 888-441-8555 Direct: 312-858-7303 Fax: 888-370-2221 Blue Line Futures LLC 141 W. Jackson #2845 Chicago IL 60604

Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

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